Answer:
ACME Drilling should record impairment loss of $6.9 million
Explanation:
According to GAAP, when the fair value of an asset is below the net carrying amount of that asset ( Asset's historical cost - Asset's accumulated depreciation or the net book value of the asset), the Company should record it as asset impairment loss.
In ACME's case, the net book value is $18.6 million while the estimated fair value is only $11.7 million meaning that the platform is actually worth less than it is recorded on ACME's book. Thus, an impairment loss of $6.9 million should be recorded ( $18.6 million - $11.7 million) to realize the fair value of the oil-drilling platform.
The sum of projected sum of future cash flows in this case is not suitable to be used to determine the oil-drilling platform because it has not been discounted to the present value amount, and also, it is not appropriate under GAAP.
Answer:
The presence of technology can be distracting to students. ...
Technology can make it easier to cheat. ...
Using tech can cause some students to disconnect from the classroom. ...
Some students may not know the difference between reliable and unreliable resources.
Answer: A. Wages or rent
Explanation: A business partnership is an association of two or more people to conduct a business. The partners pool their funds and also partake in profits or losses that might result in running the business. The contract of a partnership that states that one exist could be express or implied, written or oral.
Generally, the receipt of profits from a business is evidence of a partnership. However, when it is repayment of a debt, wages, rent, or an annuity that is received as a share of profit, such transactions do not lead to a legal inference that a partnership exists since they are considered “protected relationships”. Therefore, evidence of sharing profits is prima facie evidence of partnership existence unless the profits are wages or rent.
Answer: A. $235,700
Explanation:
Minimum value will be the present value of the yearly payments for the next 30 years at 10%.
This is a steady amount so it is an annuity.
Present value of annuity = 25,000 * Present value annuity factor, 30 years , 10%
= 25,000 * 9.4269
= $235,672.5
= $235,700
